AnswersPersonal Finance - EL3403Spending

Spending Answers

8 verified answers3 views
1
Free Preview

At what point does buying in bulk stop being a wise spending choice?

A
when the consumer has a lot of space to store bulk items
B
when costs rise too quickly due to demand
C
when bulk items are not on sale anymore
D
when the consumer buys more than is needed
2
Free Preview

This chart shows the actual pricing history for three items.

Question illustration
A
game system
B
smartphone
C
DVD
D
It's most beneficial to buy all now.
3

most

2
20 bottles of soda at $1.50 each
4
4 six-packs of soda at $5.00 each
o
one case of 24 sodas at $18.50
t
two cases of 24 sodas at $18.50 each
4

What is the purpose of comparison shopping?

A
ensuring you are not buying out of emotion
B
attempting to find the best deal on a product
C
determining whether you truly need a product
D
reading reviews to make sure a product is good
5

When companies spend millions of dollars developing logos and slogans, or use celebrity endorsements to encourage consumers to buy particular products, this is called

f
false advertising.
u
undue influence.
p
product branding.
q
quality assurance.
6

The most economical way to purchase large items, such as furniture, is to buy with.

Answer:

cash

7

The point at which it is no longer advantageous to buy in bulk is known as marginal

A
cost.
B
tipping.
C
benefit.
D
error.
8

Which details apply to a financing contract? Check all that apply.

A
requires a credit check
B
are always less expensive than using a credit card
C
includes interest rate information
D
requires a signature for rent-to-own agreements
E
can be broken at any time
9

Which activity is done in Step 2 of comparison shopping?

R
Research a product.
A
Assess the purchase objectively.
C
Compare prices and features.
B
Buy a product.
10

Which questions should someone ask when deciding whether to lease or buy a car? Check all that apply. Will I use it more than the allowed lease mileage?Will my family like the car?How long do I want the car?How much do I want to spend?How much do I like the car’s options?

A
Will I use it more than the allowed lease mileage?
B
Will my family like the car?
C
How long do I want the car?
D
How much do I want to spend?
E
How much do I like the car’s options?
11

Building equity in a home is a good thing because

A
mortgage payments decrease as equity increases.
B
credit scores increase as equity increases.
C
equity in a home increases the homeowner’s net worth.
D
property taxes decrease as equity increases.
12

Which statements apply to leasing a car? Check all that apply.

A
The car may be driven as much as needed.
B
Payments are generally higher than buying.
C
There are mileage restrictions on the car.
D
You must return the car after the lease ends.
E
There are penalties for ending the lease early.
F
You can sell the car to someone else after the lease ends.
13

Which option below is not a potential risk of purchasing a used car?

A
used cars can require repairs sooner
B
shorter lifespans of the engine and transmission
C
used cars can have lower initial cost
D
unexpected issues may arise

Did you find these answers helpful?

More from this Course

Quiz
37 verified answers

Spending

Quiz
16 verified answers

Spending

Quiz
10 verified answers

Spending

Spending Answers — Personal Finance - EL3403